! Copyright © Insight Test Services 2008 Top 10 Tips Preparing a business case/plan for investment in Test

! Copyright © Insight Test Services 2008 “To provide some guidelines to secure investment in Test” Objectives

! Copyright © Insight Test Services 2008 Education & Training Top 10 Tips (1 Hour overview) Workshop (1/2 Day) 2 Day training course “Preparing a Plan “ Services Preparation of QA & Test Business Case Business Case Review Business Case/Planning Services from Insight

! Copyright © Insight Test Services 2008 “It all comes down to the numbers” Do they add up Are they Understandable Are they traceable Are they credible Are the believable What & Why

! Copyright © Insight Test Services 2008 Top 10 Tips for Test Business Case/Plan Brainstorm, What do you think they are?

! Copyright © Insight Test Services 2008 Top 10 Tips for Test Business Case/Plan Just in case we don’t get off the early slides here is our list

! Copyright © Insight Test Services 2008 Understand the environment this investment must impact What are the business and test drivers ? Who are the primary test stakeholders & what are their needs ? What QA & Test performance measures are in place today and How do we want them to change ? What tools are available to the team to prepare the case/plan Who can help ? Options & Alternatives Assumptions Risks & Contingencies - sensitivity Demonstrate successful ROI – It will make the next time easier Top 10 Tips

! Copyright © Insight Test Services 2008 Link Test Plan/Case to business goals Alignment Identify the KPI’s you want to impact These will lead to the drivers Validate Assumptions Credibility of numbers Do the numbers Include sensitivity analysis Communicate the Value Prop. Quantitative & Qualitative Conclusions

! Copyright © Insight Test Services 2008 Software QA, Test & Compliance Solutions Consulting: Assessment, Advice, Support Capability Building: Training, Coaching Test Management & Teams: (Fn& Non Fn) Managed Test Solutions (Out-sourcing) Resources: Specialists & Experts Full Procurement and Development Lifecycle best practices (Process, Tools, Stds, Regulations) Business Driven independent advice and services (Benefits & Results focus) Easy to work with ! Insight

! Copyright © Insight Test Services 2008 Business Plan: Outlines to stakeholders where and how the unit will bring value to the organisation. Sets the direction and road map for stakeholders to deliver the value Benchmark to measure against Business Case: Outlines to stakeholders where a specific investment will deliver measurable value to the business. Clearly outlines the steps to achieve Benchmark to measure performance against “Both enable consensus, decision making and support” A Case or a Plan

! Copyright © Insight Test Services 2008 Business Plan: (Global-Strategic) Looks at overall importance of test to the business and target impact: Improved quality impact on customers and markets. Information for functional performance improvement How Test add value to business Business Case: (Specific - Tactical) Outsourcing Bring back in house Test Automation Additional resources Test Environment “Both enable consensus, decision making and support” A Case or a Plan

! Copyright © Insight Test Services 2008 Objectives Business Planning Model

! Copyright © Insight Test Services 2008 Link Test Plan/Case to business goals Alignment Identify the KPI’s you want to impact These will lead to the drivers Validate Assumptions Credibility of numbers Do the numbers Include sensitivity analysis Communicate the Value Prop. Quantitative & Qualitative Conclusions

! Copyright © Insight Test Services 2008 Why ? Any Corporate investment will be in the context of what is happening internally and externally – Failure to recognise this or changes weaken the business case. External – Our Organisations Market Place Competition, Regulations, Political, Geographic, Technologies, Business Models etc Internal – Test interfaces & Stakeholders Methods, Processes, Tools, Make versus Buy, Competition, Geographies, Political, Time to Market, Benchmarking etc “Investment decisions will be made in the context of what is happening in our environment” Tip 1 Understand The environment

! Copyright © Insight Test Services 2008 Why ? They represent the underlying activities that influence the performance of the business (costs, savings & revenues). If the organisations market is moving towards commodity costs will be a big driver so investments must create savings as an example External – Business Drivers New or changing Markets, Offerings, Products, Competition, Channels, Business Models, Activities, Locations, Regulations. ( Revenue streams from above, or costs driven by activity or headcount) Internal – Test Drivers Headcount, Defects, Waiting Time, No of projects, No of components, No of changes, No of releases, No of test cases, No of environments etc “Financials are underpinned by drivers” Tip 2 Business Drivers

! Copyright © Insight Test Services 2008 Why ? They are the customers & suppliers of test who stand to benefit from any investment, they will have a direct or indirect influence on any investment decision (They may compete for scarce funds) Who are They and what are their drivers ? End customer, End User, BA’s, Development, Management, Business Groups, IT etc – each may have slightly different drivers/priorities and can create drivers on test How does/will test address their needs ? Test is an information and service provider, how do they influence the priorities of stakeholders and how will this investment play into this. “QA & Test Metrics usually underpin test drivers” Tip 3 Test Stakeholders & their needs

! Copyright © Insight Test Services 2008 Why ? We measure what is important and what we want to improve and/or change – they often underpin performance, cost and/or value indicators Defects, found at test stage, test cycle time, test cases, test set up, execution time, rework, re document, platforms, training days delays, headcount – may be measured in test, up or down stream Activity and valuing indicators We can put a price/cost on most indicators or the activity that causes the indicator value. Any investment will be targeting improvement in one or more indicator “No metrics, No Drivers, No Case” 1 Tip 4 QA & Test Performance indicators (Metrics)

! Copyright © Insight Test Services 2008 Why ? They provide a framework for the team to analyse the environment and prepare a business case based on facts and evidence. Understanding current and future position Porters 5 forces model, Value chain analysis, Core Competence analysis, SWOT, Force Field analysis etc Building Up Data & Information (Spreadsheets) Metrics, Indicator, Driver, Unit cost, Quantity, Period costs actuals and targets. “They are not complicated and are proven” 1 Tip 5 What tools are available ?

! Copyright © Insight Test Services 2008 Why ? All the information and skill may not exist in the Test Group The stakeholders They may have data, facts and opinions that assist in building the case/plan inclusion of their inputs may strengthen the case. If they have misinformed opinions/facts then you are aware of a possible objection to proposed plan Finance These are the numbers people who have the skills to support preparing a business case/plan they also have lots of information that can be useful. “Ask and you shall receive” Tip 6 Who can help ?

! Copyright © Insight Test Services 2008 Why ? There is usually more than one way to achieve a goal. It is important to have considered the options Consistency Evaluate each option on a fair and consistent basis, use the indicators, activities and valuation approaches to produce evidence, include both subjective and objective information Make a recommendation Based on your evidence and analysis make a recommendation with supporting benefits and build up the case. “Be prepared to justify” Tip 7 Options & Alternatives

! Copyright © Insight Test Services 2008 Why ? Because they are important, they make the decision information transparent and allow decision stakeholders to challenge if they have relevant information They underpin the evidence Credible assumptions underpin every business case and plan. You will never have every piece of information or be able to predict the future accurately. State the Basis of the Assumptions Provide information and evidence as to why the assumptions should be considered valid. “We all make them – so make them transparent” 1 Tip 8 Assumptions

! Copyright © Insight Test Services 2008 Why ? As the future can not be predicted accurately, it is important to demonstrate you have considered what could go wrong (or just not happen to plan) and allow for it in the business case and plan. Risks Assumptions may be incorrect, the environment might change, look at risks within the investment minimise or neutralise Sensitivity Demonstrate worst and best case situation within the plan, stress the variables “Builds confidence with the decision makers” 1 Tip 9 Risks and Contingencies

! Copyright © Insight Test Services 2008 Why ? Because any investment is not completed until the benefits have been measured and realised. In addition it strengthens credibility. Evidence Continue to measure the KPI’s and activities, measure the benefits, it creates useful information for the future More importantly It allows you change if you identify wrong assumptions, it avoids throwing good money after bad, it allows formal and successful closure of a plan. “Always close” 1 Tip 10 Demonstrate the ROI

! Copyright © Insight Test Services 2008 Link Test Plan/Case to business goals Alignment Identify the KPI’s you want to impact These will lead to the drivers Validate Assumptions Credibility of numbers Do the numbers Include sensitivity analysis Communicate the Value Prop. Quantitative & Qualitative Conclusions

! Copyright © Insight Test Services 2008 Software QA, Test & Compliance Solutions Consulting: Assessment, Advice, Support Capability Building: Training, Coaching Test Management & Teams: (Fn& Non Fn) Managed Test Solutions (Out-sourcing) Resources: Specialists & Experts Full Procurement and Development Lifecycle best practices (Process, Tools, Stds, Regulations) Business Driven independent advice and services (Benefits & Results focus) Easy to work with ! Insight

! Copyright © Insight Test Services 2008 Ireland & UK’s largest & leading specialist software QA, Test & Validation services provider Thanks for your attention Questions?